The Dangers of Inflation Phobia

By

Brian S. Wesbury

Updated April 24, 1998 12:31 a.m. ET

If you believe the propaganda coming out of the U.S. Federal Reserve, we are on the verge of war against inflation. While the Fed is paid to worry about inflation, its current fear borders on phobia. After all, the "core" consumer price index is advancing at the slowest pace in 32 years, and nowhere in the pipeline are prices rising.

Nonetheless, the phobia is contagious. The Fed controls the nuclear weapon of economic...